Overseas Shipholding Group, Inc. (NYSE: OSG) reports that it has closed a $49,150,000 loan with a seven-year term. OSG subsidiaries, OSG 205 LLC and OSG Courageous II LLC, secured the loan to finance a new 204,000 barrel U.S.-flagged oil and chemical ATB barge, the GSO 205, and to refinance the tug to which the barge is coupled, the Courageous OSG.
The barge is being built by Greenbriar Marine shipyard, Portland, Oregon, and is expected to be delivered in the coming weeks. In connection with the financing, the lender has received a collateral assignment of the vessel construction contract for the barge and, upon delivery of the barge, the lender will hold a perfected first ranking security interest and a preferential mortgage on the vessel. The lender also holds a perfect first ranking security interest and a preferential mortgage on the vessel against the tug. The loan is guaranteed by OSG.
Dick Trueblood, Vice President and Chief Financial Officer of OSG, said: “We are very pleased to have completed the financing for OSG 205 and the tug OSG Courageous, and in particular the incredibly smooth and efficient execution of the transaction during a continuous market period. volatility.”
Sam Norton, President and CEO of OSG, said, “The transaction marks an important milestone in the completion of the construction and delivery of the second of two barges built for OSG at the Greenbriar Marine shipyard. All complex projects require the contribution of multiple partners to be successful, and we are pleased to have partnered with our funding partner and Greenbriar to provide the resources necessary to complete this project. With the imminent delivery of the barge, we look forward to commencing service under a one-year time charter early next month and continuing to focus on providing safe, reliable and environmentally friendly to our customers.